Newly Released CBP HQ Rulings Jan. 20
The Customs Rulings Online Search System (CROSS) was updated Jan. 20 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
H332158: 46 U.S.C. § 55102; 19 C.F.R. § 4.80b(a); New and Different Product; LNG Bunker Fuel
| Ruling: The proposed liquefaction operations would result in the creation of a new and different product within the meaning of 19 C.F.R. § 4.80b(a). Therefore, the proposed transportation by a non-coastwise-qualified vessel would not be a violation of the Jones Act, 46 U.S.C. § 55102. |
| Issue: Whether, based on the product specifications provided, the proposed liquefaction operation would result in the creation of a “new and different product” within the meaning of 19 C.F.R. § 4.80b(a), such that the proposed transportation by a non-coastwise-qualified vessel would not be in violation of 46 U.S.C. § 55102. |
| Item: The liquefaction and refining of natural gas into LNG bunker fuel at an offshore refinery facility located in non-U.S. waters. This facility will consist of three fixed platforms that will receive U.S.-origin natural gas via a pipeline. The natural gas will then be chemically altered and liquified to change it into LNG that will be used in the company’s downstream business. |
| Reason: The refining process that converts the pipeline feed gas into LNG is a multi-step process that removes a number of components from the feed gas and converts it to a liquid form that is suited for marine applications. This process separates the heavy hydrocarbons from the feed gas that comes out of the pipeline, products which are themselves recognized as separate products in the industry. In addition, if this LNG were to be regassified, the gas would have a different chemical composition than the feeder gas that arrived from the pipeline. |
| Ruling Date: Nov. 17, 2023 |